Gartner: 52% of Government CIOs Expect Higher Technology Budgets in 2026
A new Gartner study reveals that 52% of government chief information officers expect an increase in their technology budgets for 2026, including allocations for artificial intelligence and other core digital capabilities. The findings come despite persistent fiscal constraints, underscoring the growing recognition among public-sector leaders of the strategic role digital technologies play in modernizing government services and advancing mission-critical priorities.
Gartner’s 2026 survey of CIOs and technology executives gathered responses from 2,501 participants between 1 May and 30 June 2025, including 284 government CIOs outside the United States.
Arthur Mickoleit, Senior Director Analyst at Gartner, said: «Geopolitical shifts and economic volatility are forcing government CIOs to rapidly recalibrate their priorities in the coming year. They are under mounting pressure to demonstrate the tangible impact of technology investments on mission outcomes, from cost efficiencies to enhanced user experience and beyond.»
According to the report, government CIOs outside the United States plan to increase their investments in several key technology categories in 2026, led by cybersecurity (85%), artificial intelligence (80%), generative AI (80%), and cloud platforms (76%).
Accelerated Adoption of AI Technologies
The study found that 74% of government CIOs outside the United States have already implemented AI solutions or plan to do so within the next 12 months. Adoption rates rise to 78% for generative AI. Interest in AI agents is also gaining momentum, with 49% reporting ongoing or planned deployments within the same timeframe.
Mickoleit added: «Agent-based AI is emerging as a powerful enabler of government transformation, but CIOs must avoid being distracted by the hype at the expense of more mature technologies such as machine learning and automation. The next wave of innovation will be central to delivering on public-sector priorities, especially as expectations for digital government continue to rise.»
The survey shows growing optimism around AI and other foundational technologies as governments intensify efforts to boost workforce productivity in 2026. More than half (51%) of government CIOs outside the United States say improving employee productivity is their top priority for next year, followed by delivering new digital products and services (38%) and enhancing overall citizen and customer experience (37%).
«CIOs should prioritize AI initiatives that deliver quick efficiency and productivity gains,» Mickoleit noted. «At the same time, modernizing governance frameworks will be essential to help governments streamline procurement processes, optimize limited resources, and strike a balanced approach to risks and opportunities in citizen-facing applications.»
Rethinking Vendor Relationships Amid Global Uncertainty
The Gartner study also indicates that 55% of government CIOs outside the United States expect their engagement models with technology vendors to shift in response to rising geopolitical tensions and heightened focus on digital sovereignty. Location is becoming a critical factor in procurement decisions, alongside cost and capacity, with 39% planning to work more closely with technology providers based within their own regions.
This re-evaluation reflects broader efforts by governments to strengthen resilience, ensure compliance with regional regulations, and reduce exposure to global supply chain volatility.